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Capital News Today

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Montana 42, Us 34, California 27, Toyota 9, Washington 9, U.s. 8, Massachusetts 8, Gina 6, Gina Mccarthy 4, Washington D.c. 4, Epa 4, Honda 4, Mary Nichols 3, Ray Lahood 3, America 3, New Mexico 3, Etc. 2, Cellulosic 2, Europe 2, United States Senate 2,
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  CSPAN    Capital News Today    News/Business. News.  

    January 30, 2013
    11:00 - 2:00am EST  

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going. it's the work that matters to massachusetts, the work we have been working on here and the work i'm going to do. thank you. [inaudible] [inaudible] >> i'm not even sure who else that are technology neutral and performance-based so that everything can compete. you no, adc tripoli just published last week their top 12 cleanest cars for model year 13 and eight of the more hybrids and a couple of them were ice e.'s in a couple of them were was on the list except in other's dynamic folks, including those who reported on. from a powerful list of people, the governor select me. thank you very much. [inaudible] [inaudible conversations] [inaudible conversations] electric vehicles. so, there is a fair and balanced approach that looks at the environmental benefits from both the smart and co2 and energy consumption and fairly hybrid i maxie e's e's and electrics are competing with each other. i don't think we want to dig tate the outcomes i'm talking
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[inaudible conversations] [inaudible conversations] about electric vehicles only. if we could accomplish the same goals with other technologies, then that out to be open to the marketplace and technologies can compete with one another to achieve those goals. >> and the other comments on that question about what are the obstacles standing in the way, not electric cars but fuel cell, anything other than gasoline or [inaudible conversations] >> thank you, guys. thank you. do you agree with what robert has said? >> a good baseline for that question, if any one of us or any other companies of competitors could figure that solution out on a particular technology that a company can do very well in that market. we don't know. we have taken electrification from a small handful one, to, three, 452 something over 60 all
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[inaudible conversations] competing for what has been pointed out to be 3% of the market. and the more volume would increase. it hasn't worked out that way. we are competing for the same 3% of blue-collar owners at this point so how did challenge customers to get into electrified vehicles is a big challenge. because if we look far off into the future 25 is is starting point and that is eyes that looked at as being a point on a >> john mccain's 2000 campaign, when he ran for president is the most memorable trend towards an 8% reduction of greenhouse gases from personal transportation. there is no other technology at this point. who knows, maybe we will come up with nuclear power that will take care of it. that is next right now on the cards. so we'll look at the idea of running through electric indication to get to longer term future. the challenge in our marketplace is really severe but it's almost
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campaign of any that i've ever covered. i mean, we'll never see it again here he was facing george w. bush to head doll the republican party backing him and the two republican governors of new hampshire and all the money and john mccain would not have held 114 town meetings. he stayed there until every question is answered. as tough with something that's much simpler and that is cng and diesel. the american marketplace has been pretty adverse with diesel. with this ghastly illness con and you would think cheap fuel is something that people would gravitate very quickly. is the same issue between cng, diesel and hydrogen. >> it's a situation where you these seem like bulbs going off and people said. as long as my parties on by the insurance companies and democrats are on by trial. next question. it was just candor. you could see it in people's responses. he was totally open to the press. it was candor, openness, welcome ms. that no one had seen before and no one has certainly seen need the car to justify it. >> we are watching a lot of ways to develop that. it was mentioned on the prior panel mary got into our government's role to being guage and infrastructure employment. that's good. is a good thing but government can buy the infrastructure. the marketplace has to pull that into the market. our experience recently in looking at natural gas has been
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since. the >> last year, epa announced no standards for cars and trucks to come into effect in 2025. a panel of regulators and industry observers talk about how these new standards will be met. a second panel includes executives of chrysler and toyota. we are trying to restrain ourselves. we have a marketplace now that is moving beyond government support and it's generating interest in natural gas vehicles. a group of 20 or more states right now pooling their fleet ties into the same bucket so we can all look at who produces vehicles to sell to that market and grow our market. we think it's very exciting and this two-hour event was hosted by the national journal. >> are opening panel discussion will feature mitch bainwol, president and ceo of alliance manufacturers, don chalmers, national auto dealers association. rebecca lindland, director automotive research, ihs automotive. gina mccarthy, administrator, epa administration. mary nichols, chairman air it's the market pooling technology. that has to has to be pooled and it can be forced in a whiskey get to the fuel cell future the market has to be -- [inaudible] >> i think we have covered a lot of ground. three points if i can remember them and i can't think much on the business card. i fundamentally agree with robert in terms of performance should be the issue enough the technology.
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resources board. our moderator will be china leven, correspondent. font has covered patch of regulation for dow jones newswire and "the wall street journal" as an alumnus does columnists daily, now a national journey daily. now a reminder to everyone in the rim and viewing us the string that we welcome your comments, questions and that the atwitter hash tag n. jay otto summit. we will come around handheld with respect to your original question as well, what is interesting when you look at more and more advanced technologies is the issue from a consumer perspectiperspecti ve, and marginal cost versus marginal return. we all have been saying and they all understand in the industry that the internal combustion engine and the associated transmission light weight material will get better over time. that is going to be the biggest line moving higher and higher in any advanced to knowledge a microphones for q&a during the question-and-answer portion of this event. fawn, i will turn it over to you. hi back [applause] [inaudible] >> -- i'm going to start the so-called has redefined what is advanced and what is not then has to compete against that from a consumer perspective. there all sorts of policy reasons that people talk about for various alternative fuels and sometimes i think people have a hammer and they have to hit that nail but there are valid policy reasons that people talk about these different fuels. unfortunately, i do know people care about these policies. consumers tend not to care about them so much when i go to make
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gina mccarthy from epa. thank you for being here. if you can give us an update for 2012 through 2016. in 2025 would be helpful as well. >> first of all, thank you for pulling this together. it's an exciting week in an opportunity for us to revisit what we've accomplished over the last few years. bush's take a look. 2012 to 2016 is the first phase of the president's national car their purchase so that is the second issued, the marginal cost to marginal benefit. do you have a better internal combustion engine than what is it say about moving to a hybrid ante up a hybrid vehicle what is that say about investing substantially more in battery and potentially refueling capability to move to a electric vehicle? so that is the second in the third relates to natural gas. program that extends out to 2025. during that period of time to essentially double fuel economy up to 54.5 miles per gallon. it does it in a way that collaborates with the automakers themselves in a way that will produce the kind of cars that are safe and effective and performed the way americans consume or want to see and will really provide tremendous societal benefits. so what is a win for everyone and that is my basic message. clearly a hot topic and a revolution going on the state not to mention the lake was that are being derived from the natural gas recovery process as well. i do think that there is an interesting future for natural gas in transportation. the question is what is that future? i think what people tend to gravitate immediately towards
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if you look at it on the climate change site, what we're talking about is over the course of 2012 through 2025, vehicles will reduce carbon pollution by 6 billion metric tons. were talking about 12 and arrows of oil saved. these are numbers not to be sneezed at, ladies and gentlemen. these are very large benefits for society. we saw automakers standing up, touting this initiative because because it's in the works natural gas, compressed natural gas vehicles. the light-duty personal transportation market, i'm not sure we see at the least right now in the u.s. as necessarily a fantastic alternative. the operating costs from the hybrid with low natural gas prices, the cost up is about the same. you can refuel a hybrid anywhere they knew they could produce cars are more efficient and consumers who want to purchase. on the consumer side, perhaps consumers here are the biggest winners of all. they're going to get cars that perform the way they want better safe, that is, provide them utility they need, but they're going to save money in their pocketbooks every time they go into their vehicle. that only gets better over time as the standards increase. in your trunk space etc. etc. except from a consumer viewpoint it's a tough sell. the second aspect for natural gas, the vehicle market does seem fairly attractive for it either lng or cng vehicles and there is a lot of reasons i won't go into but not the least of which is in the long-run gasolines demand globally and here in the u.s. is projected to flatten whereas it will continue
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so it's exciting. were also used in the same initiative under heavy duty truck side. we've already produced in collaboration with the industry themselves, an initiative that extends from 2014 to 2018 and the heavy vehicle side were looking for additional savings that will make it over the next two years. again, it's collaborating with industry themselves. when they take one minute to look at what were seen in 2012 to rise driven globally by asia but also just by economic growth around the world. including here. so the potential for offset of the fuel price and the vehicles that get a lot of mileage have a lot of appeal for that. >> i'm sorry, i'm going on here but two quick points on natural gas. it has the potential as a fuel for electric vehicles and you know what you never hear enough about is the potential for because during 2012 for those of you like me who forget what year we are in. what we saw last year was that they expected to see. we saw penetration of fuel economy than a gasoline engines more efficient. we saw direct injection from five years ago from now to 25. we see more transmissions. these are the things donate benefits for the vast majority hydrogen. steam reforming natural gas to make hydrogen for fuel cell vehicles. if you look at the lifecycle energy assessment is actually the most efficient way to use the natural gas reserves that we have. and internal combustion natural gas engine is 18%, 19% thermally efficient so you are blowing a lot of natural gas out of the tailpipe. >> to rebrand hydrogen fuel
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of causes out there today. we saw two times as many hybrids and diesels as we've seen over the past five years and what we've seen is the continued pageantry is should of electrics and vehicles. the most exciting thing is six times at the label rating of 30 miles per gallon or better. in 2012, were almost seen the cells. i think that would help. said given the fact that gasoline seems to be the dominant choice of fuel for the foreseeable future as we talk about in the previous panel hp is moving forward on a tear through regulation to lower the sulfur in gasoline that finally went to the white house review today after being as journalist with a little bit delayed after the presidential election. nobody wants to be perceived as creating higher gas prices. i would like to hear from the kind of benefits that we might have anticipated in 2016. so what we've seen here is good old american ingenuity and car manufacturers. we see them challenged him to step up to the plate and see them and consumers the kind of products they are expecting that have significant societal benefits for all of us. >> thanks, gina. i have some journalists questions. i want to go next to mary automakers about what your position is on these regulations and why and why not do think it's an important step to take? >> the use of tier 3? we have worked out longer than the greenhouse gas roles. it's just the nature of how worked out. we started off with our work in california and the epa on the debates in our discussions and were started working towards the national standard at that time.
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because you have been collaborating closely with epa and some of california's regulations. if you could tell us about your dance clean car program for which she waved her and it's going. >> sure. were proud of having played a role epa and transportation and last year's achievement of the new greenhouse gas and pollution standards. were also looking at those is we have been in support of those rules for at least a year and as you said it got caught up. we are glad to see that fuel is the very important feature and the sulfur -- we have been chasing for a long time and now what they're pointing to his gas directed injection engines need sulfur to -- so it's good to see that potentially coming. the part of the bigger picture, also in collaboration with federal partners. california is trying to carve out a path, which we hope is going to not just keep on producing the best cars that are industry is capable of producing, but looking at the whole transportation system as a that moves into the next up to lower carbon fuels in general and that is the discussion we will be having over the next few years. >> i think the tier 3 is really about two things. it's the lower sulfur which is required to get the lower-cost catalysts so that we can burn the gasoline as cleanly as
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package. because of our legislation, 8032, which requires california to achieve the same standard as the country in the road that signed the kyoto treaty but their greenhouse gas emissions as a state to 1990 without those, but even more so because of challenges of meeting our clean air act requirements for health-based standards, we have to look at not just the vehicles, that the fields on the systems using both of them in a more comprehensive way. possible and about phasing in california's -- so california is the cleaner mix and they affect about 40% of the sales. and we are all in favor of having one national program that is consistent rules regardless of the state and tier 3 is really about phasing in california regs across the country, getting california level fuels and we are always the cars program focuses on vehicles and the need to bring on the next generation of vulture crain vehicles using essentially electricity or hydrogen for advanced biofuels by fair means of propulsion. in our vision for 2030 and beyond, we are looking at reducing emissions from fuels, getting ultra low carbon fuels into the mix and also rolling been very supportive of it. it will be a trivial increase on the cost of gasoline, and i think everyone should be supportive of it. >> not everybody in washington is supportive of it. do you have any comments about it and do you agree? >> i agree and i will turn this in a slightly different direction. i do agree and what is
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out the infrastructure for the state plays a role as a provider or planner, working with local planners and others so these vehicles we are seeing now being produced are going to be a success. it is essential for the economy of our state. california is not a state where movies are even silicon valley are our leading economic base. our economic base is interesting to me, then i actually wrote a blog last year for the "national journal," is this interesting thing that happens in washington about fuel prices and you know, to four for very good reasons we want to move towards lower carbon reduced dependence on foreign oil etc. etc., and lots of time and effort and money is spent to transportation, logistics, moving things through our ports. we have whole counties for the major sources of air pollution is the railyards in the truck terminals. and so, making all these pieces work together so we can truly come up with a transportation system the future that meets our environmental and economic needs is the goal here. the federal standards, steve sanders who worked on last year develop, put regulations in place and develop technologies to melissa in that direction at the same time anytime gas prices go up this much washington freaks out and they drag the oil industry and for hearings in this that and the other. i'm not advocating necessarily any particular policies right now, that but just observing that it seems like we put a lot of effort into cultivating the
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a really step in that direction because they save consumers money. we have to do more than make the cars affordable. we have to make it affordable to operate and then when people get and then they can move around and are just spending their time stuck in traffic. so we're trying to work on all of those things at the same time. >> it's a perfect lead-in to john because my question is about affordability and the impact of affordability because of the standards of california and the epa are putting out. society for advanced technology vehicles and then we do everything humanly possible to make sure they can't compete. .. >> okay, what thank you each of those who may not know, i'm an odd about real dealer. i've been in the retail business for almost 40 years, so i think i know what happens on the showroom floor in how that it might affect the in the real world. i would like to say to begin with that automobile dealers as a group are very, very much in it's a very tricky issue for a , you know, we have signed up for this regulation that is
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favor of improved fuel economy. that they would be for business if we got 54 gallons a day and there was an economic cost ways. that's not going to happen that way and that is our concern. automobile dealers have present north of 15% of the retail dollar sales in our country north of 50% of the retail employment in our country. going to essentially fuel economy in the next dozen years, and if you think about that, what that means from a consumer perspective, buying new car in the next dozen years, your cost per mile to drive the new car is cut in half. to have the same wallet-feel you have to see gasoline prices of i think it's a very, very important statement to be included in this panel. the concerns that i would have been all for the fuel economy probably fall in one of two categories. i do consumers really another consumers able to take advantage of the technology that will be coming from the manufacturers. are they willing -- will we be able to make the standards and $6 or $7, or $8 for consumers to pay the same proportion of the income in 2025 that they're paying today. and yet that's not a statement we should increase taxes on glean. it's incredibly regressive. you can sit in policy hearings
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produce a type of cars that people want? i wish i had a crystal ball and could tell you, the standards are further out than we've ever had. we would prefer them to be in five-year increments because it is easier to forecast five years out than 12 or 13 years out. but the rule is what it is. we don't know what's going to happen by 2025 in a lot of and talk about how it's a clear signal to the marnght to increase the price of gasoline, if that's what you're trying to reduce. it is, you know, when you see spikes in the price of gasoline and people are interviewed on the news and they have the lifestyle, you know, jobs to get to, and commitments that are made and then they have a huge impact to their life by these different areas, so we don't know what the demand is going to be and what the consumers will need and what they want. this is a very, very diverse country, a very, very diverse needs of the consumer and we need to address all of them. we can't address 90% and the 10% out. i would tell you what happens to consumers in washington d.c. and new york city are totally different than the consumers in high costs. so i'm not sure there's a magic, you know, dial here in washington that can be set perfectly. >> what about a carbon tax? >> well, you know, it works out to be a similar, i think, what is it for every $10 it's about -- 10 cents a gallon, eight
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new mexico for the mountain states are california. we need to consider all of them i would need to make sure the manufacturers are building vehicles that address the needs for all consumers. so are they willing? that is the concern. the other concern is are they able? this is a concern that i brought up before. although there are savings to be cents a gallon for gasoline. it's another tax. we have to be careful because it effects consumers so broadly and there are unintended consequences. at the same time, these advanced technology vehicles as tom brought up, hybrids are going to have to compete with better and better conventional vehicles, and better electricity cars have to compete with better hybrids. had by fuel economy as far as operating cars, 95% of the cars they sell, and i self-worth by the way. there is an advertisement for a honda dealer, so anyone who wants a ford -- [laughter] but the 90% of the vehicles that i sell our finance and without it becomes very difficult. it's helpful when there are market signals saying this is what society values. society values reducing carbon. therefore there's a tax or new incentive or something like that. it's very difficult to implement a way that is fair and balanced. >> right. i know, that auto companies have done work to show that. there's a direct correlation between high gasoline prices and
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financing, my business would not be very good and that's the way it is now a not so it looks like it will be in the foreseeable future. although you save money on fuel economy, if we can reach and i'm sure manufacturers can reach this standard, that doesn't guarantee people will be left to give finance. at the low end of the new vehicle market, the finance the selling of more fuel efficient cars, hybrids, electricity cars and that's politically inconvenient truth in higher gasoline prices move in that direction. i think we remember what the energy secretary said at the beginning of barack obama's term. we have need have gasoline prices as high as europe. he's been criticized by republicans ever since. would you agree, it's politically inconvenient but companies flickr which are disposable and comments and look at the payments that you're going to say when he sang a note to buy a car. those are the two numbers that they look at. they don't ask what the fuel economy is and how much money you're going to save. very frankly, i don't know when he was questioning the way they underwrite automobile paper because frankly through the great recession we are climbing out of at this point, automobile also an open secret? >> i wouldn't say that. yms don't forget the first thing that happens when the prices go up is people downsize. they get smaller vehicles, and that's not a very -- technology or shift to different fuels. it's kind of reality. so don't forget consumers have incredible choice. that's our job to provide them
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paper has performed better than almost anything a know us. and therefore their underwriting standards seem to be right on and they're not going to change that. at least the people i've talked to, the large banks of the captains i've been able to talk to has said no, we don't look at it that way. and i said this before, it doesn't make any difference if things are a nickel a bushel. if you don't have the nickel you with choice with a good product and meet their needs. but it's the idea that we're going, you know, funnel consumers in to some policy-driven choices here, i think it's we're optimistic. >> as well. the other half of the equation, i but the other half of the don't get the beans. if it's a good job because you save money over time, but you can get financed because you don't get approved because your income is low, you will not take advantage of the high technology and improved fuel economy and that sickens her in. how many vehicles does it take out of the annual market is another concern and certainly could not help with car sales equation is what can we do as automakers? and, you know, trying to innovate, trying to reduce costs, trying to develop new technology, compete with one another, you know, to get the cost of the technology down to the extent they can. is sort of the other half of the equation. we have been doing it for decades and decades and will keep doing it for decades and decades. it's a tough -- and other side of the equation on the policy
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for the fuel economy, the jalopy affect so-called into effector people say i can get financed, i think i'll hold onto my older car that really doesn't get as good as phil economy. >> in addition to the transportation department and epa, way to a stretcher department. >> well, i hope we don't start dictating to the finance versus how to finance cars because it's been very successful. side it's tough because the issues -- effect of gdp with higher prices and when you with respect to the advanced technology up tick in fuel prices go up and gdp is good you are more likely to see people invested in advanced technology to address the high fuel prices. they go up and sustained and it effect gdp and fuel prices go up and gdp is not great. you mazie the shift toward >> you bring up a great point about how the consumer is on the front line approaching knees particular issues and financing is a big deal. but that is a perfect lead to the fire and, to rebecca who has done work on what consumers want them looking into the future. can you project overlooking a and the kinds of questions that manufacturers should be asking downsizing as robert said. >> i'll be opening it up in a few minutes. i want to talk fuel we haven't brought up yet. i know, it was discussed in pretty good detail. biofuel. the renewable fuel standard coming under criticism among some interest groups and legal battles continue over epa's decision for the e15 waiver, meaning 15% of ethanol can be blended to gasoline, where did
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as they look into 2025? >> we do have a crystal ball, we forecast out. i'm in a unique position different than my share in that i'm now serving a two national academy of science committees. one is the midterm review and the other one is the barriers to electric vehicle penetration. i've been complaining about mandates about washington is that now i'm part of the you see biofuels sitting in to the transportation equation, and if you can talk about the difference between corn-based ethanol which is most of the criticism is coming and advanced ethanol, advanced biofuel that are having a harder time penetrating the market. >> well, -- [inaudible] biofuel come from food and -- [inaudible] problem. it's a very unique position and i'm excited to serve on the committee because we get the opportunity to look at these different problems and situations. when i think about the consumer, the key element for me is avoiding unintended consequences we could potentially delay the grinning at the sleeve, which is fuels from nonfuel sources that are drop in fuels. and we think that there's a good opportunity for the transition, not just from ethanol to -- but really from ethanol to the bio-- which will go in to the fuel system and be transparent in the
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in my mind the worst possible outcome if we don't make these vehicles more affordable. some information i got yesterday and time to fully integrate into my brain and i didn't bring a. i didn't know we could. so when we look at the averaging come a day of the fire, all the information the market now is the hundred $50,000 figure and i automobiles. when bewent from -- when we went from ledded gasoline to unleaded gasoline. there was a lot of focus on preventing the fuels. i think the industry is very concerned there's not enough attention that's been paid to make sure that we don't have misfueling such that consumers end up with problems in the existing fleet. the existing fleet is a couple hundred million cars. it's not just cars, there's look at average buyer of the industry is about $68,000 a year. and having worked at the fdic, mercedes-benz credit, i have a background in looking at affordability and these issues people face but cannot loan to value ratios. it's not romantic, but when you buy a car and they say, look, you're about to value isn't working. you can afford this car. generators and lawn mowers and motorcycles and on and off road-activity atv and so forth. and epa approved e15 for a small portion of the on road vehicles. there's some question about them. i think the clear direction should be towards drop in
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suddenly you are stuck with a 10-year-old suv at 12 miles per gallon. so there's certainly an element to make in vehicles affordable. what i see is people go when in say an suv fits my lifestyle for a crossover, car-based suv, but i want a fuel-efficient version of that vehicle. last year hybrid sales were 2.7%. fuels. and i think that is a very possible and -- i think we'll hear more about them in the future. >> do you have any comments about that? >> i support the future. i think it has a huge role in the future of -- [inaudible] lower carbon fuel. something important as overall reduction in transportation. to get there you can't just keep we got up to 3.2% now, what than half of that his toyota per esn or expanded line appeared courtesy toyota. we got to be to understand that brands like ford have hybrid vehicles. the chevrolet -- i'm sorry, did buick regal and buick enclave -- europe has a pair of vehicles it gets better fuel economy than the non-persian. on using fossil fuel-based items unless you are going extract carbon and put them in the ground. it's difficult. what about different processes using different feed stocks to give us low carbon fuels and then see that as market? i think the potential for having jobs in every state new sustainable renewable fuel jobs in every state should be a
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it sells about the same price. people perceive that is a risk in people right now are risk-averse. they don't note this new technology is. it takes a long time to explain when they sit in the dealership there's a lot of coordinated that needs to go on to educate consumers on what the different technologies are. i got the opportunity to drive the new 9/11, which is always a priority. and we can't get that going. with electronic cars. it's too hard for folks. we thing there's a stronghold for that. we mentioned in the previous panel, we think technology is moving forward -- the door is open. we have been engaged with a company that we think has a demonstration of a prose is that has very good. we're not necessarily supporting the company. we're supporting the pursuit of the processes to move us to the production. we think that the government good day at the office. i'm sitting there and if i can gather the user manual transmission and any any and all opportunity. i have one of the rare accessories was a manual transmission in the u.s. in june in the vehicle and the automatic version and it's got dual clutch and i'm thinking, all right, i'll try it out. it was fantastic. i'm horrified to say that needs to stay on track to encorning alternative fuels. the easiest thing for the marketplace to have a drop we use the same infrastructure. and it's not out of site. it's a little ways to the future. >> i think one of the most overlooked part of the whole conversation is the fact that the first and foremost goal of automakers is to make a car that is safe. to you ever see any conflict or
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because it is just a manual gear had%, but i enjoy driving up more than the manual. my colleague and i have were both a little bit hard by at first. you got to get in the vehicle and give people the opportunity to drive these new kinds of transmissions, these new kinds of technologies over mandating, encouraging for automakers, to poor fuel economy. it's just a matter of education hard balancing act to make sure you build a car that is safe while also trying to meet the fuel economy standards? anybody have any comments on that? >> yeah. i guess i'll jump in. yeah. you know, safety is first priority i think for all automakers. there's a tension between particularly in terms of weight, adding weight to vehicles for various safety features that not only regulations demand but also and getting people exposed to these vehicles. we've talked about that on some of the committees. i can't tell you what we specifically talk in private, the collaboration amongst the automakers, they are all facing the same issues. everyone has the same fuel economy standards to meet. there are different phases of meeting them, but the challenge is on the same. so collaborated on the circus that the consumers want and demand. and weight is an important factor to improve the fuel economy of the vehicle. i think fundamentally from toyota's view you can do both. you have a e fresh sei and -- e fresh sei and lower carbon and safe vehicle. i think the key is the pace of which the two issues are progressed with respect one another.
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really valuable. getting servers exposed to these different technologies in teaching them how they can save. the problem as it's hard to tell somebody you're going to be saving over five years when you're facing the same paycheck today and people still live paycheck to paycheck and still say what can i afford right now? getting the consumer to look at total cost of ownership is really a challenge we all have to address, not through the so, you know, having a mid 50s fuel economy target in 2025 is a long enough time, we think we can engineer vehicles including the safety features that are going to be required in a way that the vehicles will be safer for people to drive. i think it comes down balancing sort of the timing with which we're doing these things to make sure that the fuel economy treasury, but through other means. >> so i'm turning to match up here for us to put on your opining crystal ball. this is the new regulatory system we haven't seen before in collaboration with the industry and the government. what is the forecast for the future? can we see that in other areas? reduction, if you will won't get so far out from the safety side that you run in to a conflict there. given the right amount of time, which i think we have right now. we can devote it. >> we've been working hard on making sure that weight reduction doesn't impact safety. i think, you know, weight in of
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isn't playing out as we all hoped? >> or complicated question. thank you for posing such a tough question. i appreciate it. the answer really lies in the most important point super bowl week, an issue being discussed with issues in d.c. have been highly polarized, with a broad national consensus across the itself doesn't help in the crash, think of having 500 pounds of sand in your trunk. does it help you in a crash? not really. it depends on how the structure of the safety cage is designed, and we're using more and more high strength steel and other materials to deflect the weight and make vehicles safe that allow the top safety picks, and parties, across generations that move forward to make progress on the economy is. first point of fundamental consensus. we do look at the world through to her presence. marion gina were both great public servants coming thank you for what you do, look at policy through dead ideal standards. five-star vehicles in our fleet, and we're constantly improving and working on weight reduction, and i think that the other thing to be cognizant of is that most of us are trying to keep our cars out of crashes. it's not just the passive safety of what happens when you get in an accident, but the -- avoiding
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don has to worry about who's buying it, so has a real world bottom line is that we're in the middle there. i don't mean that in a negative way, but we want to comply. we embrace the ideals here in the industry tends to be allergic to mandates, but for us certainly is important when you invest in product lines and the accident in the first place. you're seeing a lot of innovation in the area of whether it's, you know, blame game assist or collision mid gracious. using -- i think there's just a lot of innovation that is going to happen in the field and i really expect cars are going get safer and safer. >> go we have any questions from the audience? we have microphones going manufacture around the globe, when you have. regulations, it's very, very tough, so when national program, one national panel, one national program we provide away. it time is really, really useful to manufacturers. the idea that fundamental consensus over time. then he did in a crystal ball around. please state who you are with. and if the question is directed to any particular expert. [inaudible] just a quick question to the whole panlt about what we're seeing in innovation in the automatic supply chain and how automakers are working with the rest of the industry. >> innovation apply change and intriewrps up there. that's is what drives business. we would think that we are
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question. we worry about what the future is going to be in the whole list of factors it was to happen with domestic oil supply, what's going to happen with the economy. if the economy strop involve higher income to qualify. what's going to happen with technology innovation? received terrific, and the show integrated to the smartest people on the planet. but reck sympathize -- recognize there's smarter people. we try leverage every aspect we can get. cars are extremely important. we deal with them daily. >> i think these the public indication of the regulations and long-term nature of them has purr -- spurred an incredible amount of innovation. room innovation coming very, very fast. but there's the question of adoption. our consumers inclined to buy these packages? so there's lots of questions that will play out over the course of a decade and no one really knows. that's why most central pieces of this whole equation is midterm. then it turned is the essence of sound public policy. at honda, and throughout our supply chain, people are looking for every advantage they can because the challenge is so great and everybody who has an idea on how to reduce the workload of -- in term of lightening, for example, or getting a lot of ideas there, and if you go to, for example,
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if we have a world in which are trying to push for an ideal we have to worry about consumers, which look at the whole equation over time and that's the midterm does. we determine what are consumers doing, with reality? if reality dictates was pushed up on the soviet. standards adjusted in a different direction, so be it. the ideas evidence-based and how we finished the detroit auto show, and there was some technology suppliers on the floor of the show out there showing some of their advanced technology toward weight reduction and fuel efficiency. and safety. so it's a really vibrant part of the economy and drives business. >> i would add to that. in addition to the supply chain, per se, if the whole collaboration, you know, you're seeing a lot more manufacturing they sober, analytic look at reality and the capacity to be nimble inconsistent with the healthy economic and healthy environmental future. >> i think that's a great prescription for a whole lot of regulatory systems, which makes me turn back to gina here and to chew on the spot a little bit. operation, manufacturing supplier collaboration, partnership and electricity vehicle with has disa and small vehicle production in mexico look forward on hybrid systems for trucks with bmw and other technologies. i think that's another result of the landscape we're seeing and the drive to reduce cost to
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.. improve scale and spread the costs out, you know, among well the greater number of convenes -- vehicle in the field. i think it's another key aspect. >> another question over there. >> hi, bob -- [inaudible] advanced biofuel u.s.a. give fact that the fuel economy standards aren't fuel economy standards -- [inaudible] the uniqueness about this rulemaking is that i think we were able to work collaboratively with the epa and d.o.t. and with the california resources board. we. we have the technical expertise in this area that we have grown for decades together. said previously about trying to get more drop in fuels to the market would seem to be a way to achieve that standard. if you're going forward in the mid course contradiction, you know, 40 miles per hour with the total renewable meets the goal anyway. so i would like to get your comment on that. also, given the fact that the new turbo charged engine to operate peek efficiency need higher combustion and of course
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and we did not establish this rule on the basis of any ideals. we establish this rule on the basis of really sound technical understanding of what technologies are in the marketplace and what technologies will be readily available by 2025. we understood a great deal of what the costs associated with those with e. and what it would mean for the consumers. we spent a great deal of time looking to make sure, and what contain. do you have any thought to having a new fuel through tier three that would have the higher of course october -- of blank you're points are excellent ones. i think try to address it to be clear we support the drop in can be properly processed not just arbitrary produce drop in. we have to do it open-mindedly. we saw and 2025 analysis was that the vast majority of the improvements are going to be delivered through gasoline and diesel vehicles, the ones that people are comfortable purchasing. they don't care that the fuel injection system is more efficient or their transmission is automatic. what we actually estimated is the standards will be driving the vast majority of improvements across-the-board in gasoline and diesel. with a specific of course contain that is dangerous the same carbon tanks. yeah.
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you can get almost to go by 2025. billy king we were looking at is the potential penetration rate of 2% of electrical vehicles, 5% of hybrid so this is not anywhere in epa fantasy world trying to distake that to the market. was looking at what the real market means in what consumers need to see. i guess the only thing i would say is that this program is already started. we could do better with better design fuels, that's for sure. octane is very important, but what we need most is we need to have narrowly specified fuel so we can optimize to that fuel. it doesn't make that much difference in ox ctan. we can improve maybe not as much. >> i agree with that. my one concern is that to the already 20% of the goals me 20 sixteenths dander to. did we miss? did we set our sights to love? actually no. once you engage in a collaborative way with the industry sector and in this case automakers, they drive improvements faster and cheaper than we ever estimate and we are looking forward to this continuing. >> can you tell us about the auto manufacturing industries that would distinguish it -- extent we have classified fuel we design optimized fuels around. it's going to be available in the market. and, you know, so there's talk in higher level whether it be alcohol, ethanol blends or others to increase the octan in the fuel and improve fuel economy, you're talking high up. you better have the fuel
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that would distinguish it from other industries you would be having similar -- [inaudible] >> a partner in crime. i see a difference in the fact that the global auto industry has been positioning itself for a long time to deal with fundamental demographic changes that come about because we live in a global economy and because the way consumers buy things are different. available or else you'll see high gasoline prices or behavior -- waivers and operating on the optimal fuel in the market. >> a question over here. >> yeah. ron, green car journal. the discussion about hydrogen adds a future fuel, robert, i know honda has had the civic g x and the natural gas our 2012 census. it was assembly line produced starting in '89. i think it would be more challenging to be in the auto dealership business right now than it ever has been, not just because the the of the cost of new vehicles and the fact that there are so many kinds of vehicles out there that you have to understand that because the financing is different. people are used to buying cell phones where you pay for the minutes and you pay for the use, not for the machine. the machine is incredibly expensive and people pay to use it that way. younger consumers in many instances don't have the dream you're standing alone with a passenger car powered by natural gas. honda talked far long time about h2. the transition from using a natural gas fuel to hydrogen bhap is it going to take to get to that point? , i mean, you have the clarity, a wonderful car, like the natural gas. that traps suggestion to hydrogen fuel. getting consumers to put the
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of buying a car in the way that they use to. they want to be able to have transportation but they are very happy to belong to a club where they can get the use of the car when they want to or use these apps on their cell phones that bring the car to you wherever you are, whenever you want it. these are all advances that are happening with no policy direction coming from the government whatsoever. but i think as an industry and partly because they were faced infrastructure together. what are we looking at to make it realistic? >> yeah. so as i said earlier natural gas is a great feed stock for hydrogen. hydrogen can be made in so many different ways, you know, one of the favorite ideas is, you know, intermitt power at night which can be converted to electricity and hydrogen. there's all kinds of ways to with such a horrible situation in the early days of the recession, has really begun to embrace a more holistic view of the business that they are in. but i really want to underscore what gina said. the standards that we have adopted that we are living with right now in and of themselves do very little to push in the direction of the kind of advanced technology vehicles in the sense that people would experience them as something different than what they see now make hydrogen. the problem is two-fold. infrastructure is getting the cost done. they are promising vehicles, and costs are coming down but it's challenging. i think most of the industry seems that there's a great opportunity starting to formalize in california, there's a proposal there for an estate
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>> tell me what the next consumer -- my son is going to be looking for. >> i reluctantly endorsed the data that talks about younger people which we define as people basically 26, 27 and younger and they really are getting their driver's license later. some of them don't need their driver's license at all. it makes my heart to hear that, but they really are changing to help build infrastructure up to about 100 stations of a hydrogen, and we think it's going to be the right mix for automakers to bring forth higher quality within commercial volume of fuel vehicles. probably in the 1517 ton frame if the infrastructure can materialize. so i think we're optimistic it. we are supportive of bill in ability. it's not just about affordable ability. it is about changing ability. as mary said, and you know it's a very geographically diverse country. it's amazing the differences and the demands on a vehicle in alaska versus the demand of a teenager has on the team -- teenager in manhattan. what we are seeing is within california to fund those stations. right now there's a handful of stations out there and mark -- more planned and frankly until we see the strong signal, it's hard to kind of get the momentum behind it. >> person over here. >> dr. sam hancock. [inaudible] i want to followup on the last
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those cities and within places where it's practical, many people really don't have an interest in owning a vehicle. we are growing up, we owned it. we collected things. we had cds. i didn't, but some people had eight-track tapes in here. but you collected things. [laughter] my older brothers did. you know you collected things. you collected movies and it was two questions. you look at the continued warming of the planet and climb change, what is the intersect between the manufacturers industry government and the consumers as far as addressing this? it's a reality that is coming on adds very fast and definitely by 2050. how does that fit your plans of you cafe standard? >> well, let me take a stab that the. all about your cd collection and now it's all on a teeny tiny little phone. everything, all your movies, all your music, all your contacts, everything. they don't want to collect things any more. they don't want the responsibility of the card. they. they are more than happy to share. my first car, nobody was allowed to drive that thing. and now the idea of car sharing the, if you look at the goal of the reducing our transportation co2 by dramatically say 80% by 2050, then the big impact has to be felt in the new car. the new car fleet eventually turns over and becomes a part of the car park.
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is so foreign even 10 years ago and the changes been really incredible. there is about 80 million people under 35 years old in this country. they will change mobility for us they are changing it organically, which is my favorite way to do this because many don't have the unintended consequences that i want to avoid so much. so there is definitely a change combat not only about the affordability and ability but and actually where these standards are for 2025, is on a path toward that, and i think that in many ways, customers do not have to be aware of this. we have an industry, we have policies that are driving us along that path, and but i think how people are approaching mobility and where they use public transportation or where they can use car sharing. these are things that are very very appealing to them and these people are different than you and i. [laughter] so we have to counter that. i will tell you, they are going the forecast for automobile purchases going outbound. in the future, as we get to the more stringent part of the curves where at least today it looks it's going to be more expensive to meet those. i think in the future we're going absolutely have to have broad consumer support. if you didn't have consumer support you can't make a policy. and you certainly can't have vehicles that people respond to. but i think for the near term,
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i can't tell you the exact amount because we haven't made public yet but it's not an insignificant amount of volume and we are lowering it to cousin of these mobility changes that we see in consumer behavior. >> how does the industry respond to this? >> there is no question there's a change in patterns and attitudes about low bill of the among the younger folks. i think sometimes we have to we're on a path that is going to be very helpful and certainly the first few steps there, and taking lot of isn't asking a lot of consumers to make. >> time for one more question. >> [inaudible question] analyze. the reality is we are selling -- and -- it he give or take -- 15, one time and that should be a fairly stable number in a stable economy and a stable population over time. if. if you look at it globally, in 1950 they were in the 75 to >> mike jackson, the ceo of auto nation declared what we call the moment of truth. i think we have been talking about in the first panel and the second panel today. and the moment of truth he describes it is when the consumer comes to the showroom floor and -- with the bean analogy early jeer mentioned this. the greenest of the green person who wants to be a patriot and get us on the petroleum standard looks at the combustion engine,
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80 million unit range of that will go up north of 100 million fairly soon mostly on the strength of china and india. worldwide mobility is gaining mr miss steam and there's no question within that mix of numbers there are different patterns and different tendencies. i think the most profound thing for the kids this connectivity and that is is an issue we will all have to wrestle with is looking at the alternative energy vehicle, and when they see the price difference forgets being green. remembers he's a capitalist and goes for the cheaper vehicle. do any of you, as manufactures, i recognize you're not economists, have any sort of percentage of fleet penetration where all of the alternative energy products kind of have a connect the city and the car a good thing or a bad thing? thirst no question that the phone for someone who is 25 is an extension of their brain and an extension of their brain that they don't want to yield when they get into an automobile. for. for some, that is a challenge because it's a distraction for others. it's an asset because it provides information that is going to diminish congestion and which is going to save fuel. water shed moment where your costs aren't able to be defrayed such that they come more in line with a combustion engine and that's the point at which all of these technologies become more viable? >> that's a tough question. i'm not sure if there's a single answer in term of the technologies. let me say this, and -- [inaudible] directly answer this. [laughter]
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so it's a double-edged kind of sword. we have to find a way to deal with that in overtime one of the challenges we all have is the need to forge a consistent policy across agencies within agencies that deals with connectivity in a fashion that yields the maximum social value which is information, reducing congestion and saving fuel. >> mary, this is a good way to talk about how to broaden the yeah. what i want to say is, you know, my opening comment we talked about the strategy, and in 2012, the calendar year, 16% of our toyota fleet in the u.s. was hybrid. it's taken twelve to thirteen years to get to that level. hybrids are a key part of our business now. they are a key contributor to our business, and i don't know concept of mobility. i am interested in your thoughts and california is in some ways a leader in this area. your thoughts on the impact of mass transit when it comes to mobility and do you need to have the same kinds of environmental concerns and also how to make the infrastructure function in a smart way,, smart in the connectivity way. if that you know what that says about other technologies such as electrification or hydrogen or other so-called alternative or advanced technology. but that's one sort of learning point, i think, in and barometer the industry itself is only 3% when. technology and there's a long way to go there still. >> you know, it's --let look
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>> it's a little bit ironic that california which is really built by the railroad is now rediscovering rail and looking at ways to invest huge amounts of money in not only adding new rail lines and high-speed rail in the central valley where all the major growth is occurring in our state, but also looking at ways to electrify at the rail. i've mentioned before the issue of fuels and the big challenge back a little bit. you know, forty years ago, forty years ago, cars were pa luting in terms of smog forming in missions about a thousand times more than they do today, and they got about real world terms maybe half fuel economy they get that we face really in the area of unknown is the fuel of the future. we can specify environmental needs and we can talk about standards and so forth, but we certainly did not control what kind of discoveries are going to come on line or what is going to be the impact of the major new developments of oil and natural gas when it comes to the choices that consumers will make about today. and now we're looking forward from here and saying where are we going? well, we solved an incredible problem and the tail pipe emissions are nothing short of revolutionary, and that was done with to a large extend invisibly to the consumer.
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what they want to buy and how they want to use those vehicles. i think what we can do as they stated what every state does is to work to try to find ways to fix our infrastructure so it gives us the biggest bang for the buck economically as well as environmentally and to do that, we need to look at where we can be investing so that we will attract the kind of businesses that we want and do it in a way and i think from -- [inaudible] we are very optimistic. it's very challenging. we don't expect there to be any technology as incredible as the catalytic converter to come along to take care of carbon, but there is a portfolio of technologies in the showroom today for wide variety of that will keep our add to the desirability of the state as a place that people want to come and work. there is no question that younger people and to some extent all of us are looking at commuting distances and time differently than we used to, the desire for the suburban style of living with a two-car garage and manufacturers. ten years ago, it would have been very hard to go in and have the variety of choices that these very green customers could choose from. and today there's a lot more product. i don't think that's going to stop, i think innovation is going to be the -- is going to be impacted -- innovation is always what consumers expect when they come to the showroom
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so forth has drastically receded and that's not just because of the state of the economy, because things are now bouncing back in california. people are still choosing to look at more compact walkable transit oriented kind of communities and those cities and regions are coming along and trying to provide people with that kind of service that they want. fortunately the people who build cars also build a lot of other kinds of transportation and buy a new car. i think that in the next, you know, ten or fifteen years, we're going see a lot more clarity where consumers are nows -- focusing it may be in ways we don't expect. for example, when you drive a vehicle that has an e electric motor instead of an engine, it has difference performance characteristics. it's fun to drive. it has a lot of low-end torque. vehicles, and the cars themselves can be operated in ways using information systems and smart roadways and all of that make them more like a public amenity then we think of cars today. so i think part of what is exciting about all of this is that there is a lot of private-sector thinking going on and this is not just government people or think-tanks and universities that are doing this there may be attribute for the new vehicles that are more important consumers than their environmental attribute. we have a poll from the mark and a lot of problems get solved. i think we have to be optimistic, keep working hard, get cost down, and don't innovate. >> i think that sounds like a good final word. i want to thank our panelists for being here.
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kind of thinking. we have had interactions with a number the number of auto companies that are investing significant resources and kind of trying to gather together the best minds to look at what the city of the future is going to be like and whether customers are going to be and who they are going to be. and that kind of thinking i really think is what is going to get assault towards a set of standards and regulations that work with the earth. [applause] [applause] on the next washington journal, a look at the u.s. auto industry. we'll discuss how energy and environmental policy effect the industry. preview what is expected for car sales this year, and talk about auto safety in federal regulation. .. >> i want to open this up for questions but before he do that i have to ask my journalist question to gina. this is a soft one. it's not a gotcha. some of the leaders in your efforts are either departing or have departed already. what is the impact of the departure of laid -- ray lahood and that lisa johnson has
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and -- [inaudible] is the first of all both ray lahood and lisa jackson are to be commended for their leadership on this. they forged a marriage between the epa and d.o.t. that really benefit i think all of us, and that partnership will continue. but i will say that as good as labor -- ray lahood and lisa jackson, it came from the by the time we hit the second world war, we were right around 2.1, 2.2 and immediately after, this account would wear sturdy. as the baby boom. that's a term which hates us. it really was a remarkable moment. it is quite high. president of the united states and president obama's going to be here with us as we continue these methods and as you indicated to think about how we use the same collaborative approach to look at where the market is heading and how do we take most advantage of that working with the private sector and those that we regulate. that is going to continue. >> i think if you can wait for a microphone which is in the back here and also if you can identify yourself, that would be he .7 i think for white americans for victory 3.9 black americans. not only did jump up, they stayed up until your generation. people change the lives of her generation. 1970, that momentum saw not a gradual dropping off the cliffs.
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great. >> hi. i write the weekly newsletter and no one here is talked about the gas tax. i'm sure you have all thought about it a lot. plenty of studies have shown consumer willingness to buy fuel-efficient cars is tied to lower prices and gas or i should say higher prices and gas. congress obviously is in no mood to raise the gas tax right now, >> tonight, nearly alike that montana governor, trained to keep the state of the state address. to discuss the state budget, early education and health care. this is 45 minutes. [cheers and applause] so how do we deal with that to make consumers perhaps more willing to look at fuel-efficient models? >> an excellent question. who wants to take that? >> i will be brave. i think when i think about how do we get consumers -- it's nice to see you. we have talked on the phone a lot before. when. chair mac [cheers and applause] [cheers and applause]
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when we look at getting these consumers, for me it's about educating them on the total cost of ownership and what that means for them over the course of the life of of the vehicle, whether they are in a lease situation or they have purchased a door there is a 10% that -- it's understanding the total, and i also think -- one of my girlfriends lives in new jersey. they. >> lieutenant governor walsh, mr. president, mr. speaker, members of the 63rd legislature, governor and mrs. babcock, honored numbers of the judiciary, my so statewide officials, tribal leaders, members of my cabinet and my fellow montanans. lisa, caroline, alex and they don't have to pump their own gas. they do it for you there. she moved and she was horrified. you have to put a value on having an electric car you can plug in at home. you are not paying for gas and back in 2008 when the gas spiked and we were throwing in $100 a tank full and he do that a couple of times a month, that's a lot of money. educating them and understanding what it means to drive, whether cameron. my name is steve and i work for the state. [applause] i like those 12 dozen other errors arrived at the job site each day to serve the people of montana. it's an honor and a pleasure to be the public servant entrusted with giving this address.
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it's a fully electric vehicle or something like the chevy volt. one of my friends put gas in his bold and august and december. that is pretty darned appealing to me. one tank of gas. he goes home every night and he plugs it in and drives to his office and back. that is an incredible amount of money saved and that is direct into your pocket where taxes have nothing to do with it. any changes of administration naturally will bring changes to the governor's mansion. changes in substance, changes in style, changes in perspective. with the bullocks moving into the neighborhood, some changes are at vertical. now, it's been 40 years since the predominant noise emanating from the governor's mansion has that i think is one of the key elements and i look in the metro new york new york area where he lived in a look at all the cars at the train station and they are using public transportation but they are driving from their mansion to the train station in a 15-year-old suv because it's a train car. understanding that you know if you drive -- because they all live within town. if you live in sanford you're using the stanford train station. been the sound of children. children laughing, singing, shouting, playing, just being kids. that noise will be a daily reminder for me and i hope a reminder for each of u.s. file of the reason we were sent here. montana voters sent us here to make our children and grandchildren's future brighter, more hopeful and more prosperous year of the state of montana.
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taking the lead for the mitsubishi or whatever it might be from your mansion to the train station and then to your job in manhattan, how fabulous is that? and translating that into people understanding how that could have a positive impact on your wallet i think is something that we have more of her responsibility to get the word out to the suburbanites in the world that have that a to z [applause] now, if we're genuine and are concerned for her children's future, will be as careful with the state's money as we teach our children to be with tears. if we accept that this is more about their generation and ours, will enter this building every single day trying to make it so they have even greater commute and they go the same place all the time. >> i want you to weigh in on this but for anybody who can talk about the next step when it comes to federal financing which is the sense of the vehicle miles traveled but not the gas, the sensibility that i'm getting from congress but also from consumers. people are not ready for that. i. i am not sure that is true. i'm just interested in whether opportunities that each and every one of us had. if were truly committed to making our children's future brighter, will invest in our education system. for before they enter kindergarten to the team elite higher education, we must prepare them to succeed in a 21st century economy. and if we are sincere americans turn for the next generation, how we deal with one another
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the industry is ready for that. >> this is another tough question and probably another hour panel for the gas tax. i do want to comment quickly on a couple of points. and auto index where we talk to consumers about -- and ask them what do you intend to buy with your next car and when do you intend to buy that car? we started this in me and from matters. not only turning the session, the threat became pain to bring us two of these positions of public trust. everyday our kids watch what we do and every day they learn from us. some members of the 63rd legislature, what i ask of you tonight is simple and straightforward. first, be responsible with their budget because i won't allow us to spend more than we take in or may through december there was basically zero shift in attitudes about what they wanted to buy and as we look at gas prices, gas prices fluctuated 15 or 20% in that span of time and there was no impact on buying behavior. you can look at that two ways. one as you can say that consumers aren't very smart and we have to educate them. i know, but the implication is make cuts undermine long-term stability. second, join me in focusing on creating jobs, improving our system of education and making government more effect it. and lastly, acted in a manner that were not ashamed of our children watching because they are. i'm taking this principles to heart. and we've already hit the ground running to create better jobs, better schools and more effect
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that if we informed them they will make wise choices. or we can say they are going to the showrooms and buying a new car and give the average age cars 11 years old and they are experiencing a fundamental monumental shift in fuel efficiency gains, so they're looking at this and saying imrt driving this massive value that will help my life. gas prices are fairly stable. why should i invest a ton more of government. a company recently came to montana and said goodbye to look in in a manufacturing city, but they needed a workforce ready for the high-tech betting they do. he's high-paying jobs are exactly the kind we should have here in montana. that's why we with great falls college. the begin training workers to fill these jobs in this company is now moving to the electric money to get a super game here? i'm not justifying what i'm thinking. i am saying that's just what's going on in peoples heads. we have some evidence to that. we asked people how much would you spend for 15% gain in fuel economy and one third say not a penny. one third say something under under 2011% say somewhere between two and $5000 and a fraction over 5000. city. [applause] i think the program also ensure high schools in great falls can graduate with certificates that
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there is a daily serious cost dynamic here that gets into the buying behavior in the last point really is, the most important thing we can do is get people to buy new cars. we want them to buy super fuel-efficient cars but we want them to get new cars because they are safer, they are cleaner and they are going to save a lot of fuel. and. >> if everybody would buy a would make them attractive candidates for the company as well. so not only is it better job, the better education. at the tulsa to bring to market new government to montana and we do not already as well. tomorrow for the first time ever, montana's check book will be online. [applause] brand-new car today it would be an incredible savings of fuel and that is the point. the premise of the question also there is an assumption i presume that fuel prices will continue to rise like we have seen them even though they have been stable recently and i'm just not sure if everybody -- that maybe one of those life-changing things in the next 10 or 15 years that totally changes things. fuel may become more affordable. i don't know where that leads us bubble has is a searchable database so anyone in siena or anyone across the world for that matter can look at how we're spending taxpayers money. it's the right thing to do it up a lead to more effective government. other somethings i can accomplish it that your active engagement in partnership, there are other areas where we need each other.
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and we don't know what we are going to be dealing with in the future. that is why mitch what you said about the midterm review, i think that is so important because if we have the robust midterm review and that the data take us where it should take us, we are going to be much much better off and make much better decisions. the closer we get to that the shorter time we are forecasting out and the more accurate the predictions will be and the better the policy will be. >> a question over here? meet each other for going to make progress. crafting a budget is one of those areas. montana is the envy of other states. our unemployment is lower and our economy sounder while every other state's budget is in writing things to sell solid fiscal management, half a billion dollars budget surplus. our state is strong and going >> with the k street alternative energy strategies. i fed question for assists in ministry to mccarthy and that is last week d.c. circuit court of appeals issued a decision vacating the sale of ethanol targets under the fuel standard to which was set up by congress under the energy independent security act of 2007 and although upheld most of the parts of the fuel standards too. stronger. [applause] to continue improving our position, i didn't montanans honestly take a a balanced approach. let's invest some time with give some back. saving out to be simple. address issues of the legislative session at the rainy day fund. enough money so i don't have to
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i was wondering what your reaction was to that decision and to cup whether epa is going to appeal that and thirdly generally the upcoming congressional debate on the future of the renewable fuel standard's? thank you. >> thanks for the question. it opens up a whole other can of worms that we could talk about a lot but what i will say is that we were disappointed in the decision. i don't have any news for you on whether or not we attend -- call you back in a month or year from now. that means we have to prioritize, just like the families do any cheery districts. i'm products montanans need and the long-term liabilities that this before we arrive created for us. keep in mind that if i pull out my veto pen, it may not be personal. they may just be fiscal. and tend to appeal but the decision was very narrow one. is basically said that we were looking actually too closely at tying in the levels we were projecting for cellulosic. too much to the goals that congress intended as opposed to the direct data we had in hand. we will be listening to that decision regardless of whether we appeal it and up it will be moving towards the standards that more closely are tied in we can also invest some. i ask you to join in prioritizing job creation, education and a more effective government. i'll start with the twofer. the first step you should take in creating jobs and advancing education is to put politics aside and pass the jobs bill. [applause]
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with directly underpinned by actual date on the ground. but the good news about that decision is it didn't reduce the amount in the system. ultimately. ultimately it has a very narrow impact and it's something that is -- we are going to continue to look at and be consistent with beginning with 2013. but what i would also tell you is that the exciting thing about the renewable fuel standard is all of us really wanted it to [cheers and applause] sometimes all it takes is one. as montana's comorbid reputation for rick and heard that counterpart than any other state in the country. the quality of our workers the track here. but we can expect to develop a 21st century workforce in generate cellulosic. that is what we were looking for and we have cellulosic now. we have issued our first -- which is very exciting and we have really good data in terms of identifying the industry moving forward. so we have turned a bit of the corner there that we are hoping will continue to grow. >> in the back here. >> marked with channel designer. two things. 20th century conditions. the next generation of plumbers, welders, nurses and imaging tax, diesel mechanics and carpenters really are learning their trade in substandard facilities. this is a college was built in 1956 for 700 students. it now has an enrollment approaching 3000. last week i visited the automotive and diesel programs that has 200 students.
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first, i think you completely missed the tax question. i think the answer drifted off in a different direction and he didn't talk about if gasoline falls down and percentage of fuel in the gas tax stays flat where are you going to get the ravage do the road were? you had interesting comments but you didn't answer the question. the second thing is you are talking about electric automobiles and things like that like the electric grid can handle electric automobiles and the power plants and there is 100% placement rate in some graduates learned a salary heckuva lot better than the governor. [laughter] go with that investment, the program can't continue to grow. and it's not just mozilla and hopper. many facilities are operating beyond capacity. these montanans are willing to invest in higher education really do deserve better. the capacity in the state public utility commissions are supportive of expansions in both generation and transmission which some of us in the field don't see. so two parts to that. >> anyone want to weigh in on that? >> let me jump in if i may on the state of california because we do have a policy coming from the governor but also the public utilities commission and maybe even more surprisingly to some that's five representatives galan and i along with groups like the montana chamber of commerce, so many others have joined together to propose record investments in educational facilities. it's called the jobs bill, which stands for jobs and opportunities by building schools. we can take advantage of historically low interest rates and immediately create thousands of jobs across the state.
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of you the independent system operator that funds the grid. we of course are leaders and the construction of new renewable energy generating facilities in california but we still import a lot of electricity from outside of our state including coal-fired electricity and we see the use of electric vehicles as evening that out. we know we are going to need some more natural gas fired and we can do it without raising taxes. [applause] so please, let's stand together and let's stand together with over 2500 construction workers. they want to pay to world-class schools across the state for a workforce. and while radek, plus make sure 2500 plus construction workers generating capacity to support all the renewables we are putting in our system but ultimately we believe the only way we are going to our air and climate goals are through a system that incorporates a lot of plug-in plug-in vehicles. another works not just something we are accepting because it should happen. it's something that we want to see happen because it will make the whole grid operate more efficiently on into the future. building plates a jobs bill are our friends and our neighbors. right now we have a law in the books at the post requires a staff of the workers on any construction project funded by state or local tax dollars be montana residents. it's not enforceable. with taxpayer money, it's on a project. this but montana companies in montana workers first. [cheers and applause]
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i am going to do it. i will. gas taxes are in something that any elected official will go out and advocate for. they are not mainly because we don't believe in taxes as a way to induce behavior in this country. it. it is a fundamental precept that we don't ask people to make them stop doing something, artiles we don't do it offense and certainly when it comes to driving large cars. having said that, because i work for governor and have worked with the same governor before, i again, together we can work together to close these loopholes, expand the requirement to all projects, not just construction. it's also significantly industry workers required on any state or locally funded project. i hope you'll join commander can tell you that we understand the need to get revenue to operate our transportation system and we are looking at ways that we can do that are more equitable and less targeted than any one industry. our approach has been to focus on carbon. we have this many people know, a cap-and-trade system for major emitting sources which is going to bring fuels under the cap. that will mean that the people who make the fuels will be curtis and i to pass this measures we can put more money in the hands of montana businesses and create more jobs for montana workers. as we put montana companies and workers first, we must not forget the first montanans. in my budget i propose full funding for country economic development. i also insisted that the funding become permanent. so year after year, american indians don't have to come
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paying a price for the content of the fuel but it's based on the fuel. it's not based on the volume driven -- is intended to focus on the thing that we need to use less of which is carbon. >> we have time for one more pic question here in the front. >> we representative for idea of technology innovators. quick question for gina and mary. gene of the two or three and proposals seem to be making asking for these job creating funds. unfortunately, the first few weeks of the legislature funding has been cut in half. i ask that this body, if you're serious about job creation for all montanans, restore full funding for indian country economic development to make the offending permanent. [applause] process and first of all congratulations and it's clear that not everybody is on board so some sense of how the road ahead looks on that. you reference number times the fuel piece of this puzzle, the low-carbon fuel standard is facing litigation. for both provisions the uncertainty for technology innovators is a real challenge now we not been investing in our students in educational institutions requires more than the bricks and mortar in a jobs bill. for generations, our education system has been recognized as the key to economic growth and job creation. the public schools are more than that. they are truly, truly the great equalizer regardless of where we
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seeking investments for the next generation of technologies. can you comment on the path forward to these in your sense about things you are doing individually to help provide certainties to investor's? >> chris let me jump to the first part of your questions everybody is familiar. what. what chris is referring to is another generation of requirements that will look at improved vehicle emission standards as well as lower are born or how wealthier parents are, our public schools opened the doors of opportunities to all montanans. even help the kid who couldn't and still really can't stand still to become governor of the greatest state in the country. [applause] as the father of a fifth and second grader a kindergartner, standard synfuels. it is an attempt to nationalize again fuel standards. california and others are out in front of this and clearly other countries are in front of lower sulfur fuse. there is actually a lot of moments him and for moving forward with a quickly. chris is referring to the fact that it's being reviewed it is in the interagency process. we expect to put that rollout in no issue is more important than extending the opportunities afforded by good education to montana's next generation. our school is an incredible teachers to educate our kids give us much to celebrate. on 10 eighth-graders outperform every other state in the nation. in reading and math and second in science. [applause]
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march. the idea is by the end of the year we know automakers are looking for the availability of that low sulfur fuel not just because they are ingested in lower emitting vehicles and cleaning our air and public health benefits that will be so important for all of us but also it allows them to have different technologies available in those vehicles that will perform and allow them to meet these standards and other standards moving forward. that again will be so important our high school graduation rates are up and our dropout rate is down and were increasing the rate at which montana resident are getting college degrees faster than any other state in the nation, but were not done. it's not where we start. it's where you finish. we know an educated workforce is the foundation for prosperous economy. so let's actually commit to increase the number of adults to all of us. do you want to jump in there? >> we totally agree with what gina just said about the advantages of nationalizing. we have a number of states that have adopted california's standards so california vehicles are making their way throughout the country, but we need to have cleaner fuels available in tier 3 is an important piece of making that happen. with a postsecondary degree, professional certification. let's commit to 60% over the next decade. that's an ambitious goal. for about 40%. but the future of the state will be shaped on the schools and what are workforce is. i've asked the commissioner of higher education teacher named committing to the school. i asked the same of io because
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i think the way we do that is through putting out planning documents that are matched by a regulation and having a program where we bring together all of the agencies in our state that have an impact on investment decisions to send the clearest possible signals about where we are headed as a state. i think this has been an important hallmark of governor brown's approach to policy and we can't do it without you. this is one of those schools that we are in it together. i've included proposals in the budget that move us in that direction. offering college classes to more high school students will help them recognize higher education is within their reach and will give them a jump start on earning college credit. that's why must you need a help her two-year colleges expand and enhance this dual credit we are definitely seeing the benefits of it in terms of the investments that are coming into california for clean fuels and clean vehicles. we are facing major pushback on the part of the petroleum industry against the low-carbon fuel standard. interestingly, the lawsuit that you mentioned was actually brought by midwestern corn ethanol producers who objected to the fact that we use a lifecycle approach to accounting for carbon content of fuels programs. if a student starts at thailand, you shouldn't have to reapply them to different financial aid if they want to take classes or transfer. we can make it easier for students i finally creating something that should've been done a long time ago, a universal system of enrollment. they have access to courses at montana state university. to help reach hundreds of miles between a rural areas and
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which discriminates against out-of-state fuels. as it turned out, and honest accounting of the lifecycle cost reveals that many of the midwest ethanol producers were able to actually come and with lower numbers than some of our domestic producers, and so the factual basis for that case has kind of the road underneath them. but the idea that california universities. i ask you to pass that. [applause] and we are worried to introduce more college graduates at the cost of college is beyond the reach of montana families. let's not kid ourselves. as cautious as this body is about raising taxes, with tuition increases, education is could get away with pushing the m. globe on the carbon content of our fuel supply is something that i think will not go unchallenged and we are going to continue to have to defend the need for that in the value of it from what we are seeing so far, we have done well in our efforts in the court. never to be taken for granted, but we do feel that they can an adequate funded. as attacks on tens of thousands of working montana families all across our state. to freeze tuition across the university system. i urge you to honor that agreement. [applause]
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implement the system in a way that will bring the cleanest fuels to our state and show the benefits of having them there. >> that will have to be the last word. thank you all for joining us and i believe we have a break. [applause] so thank you very much. >> thank you. >> amy said they'd will moderate many college students have returned home from serving our country in the armed forces. these soldiers, sailors, marines, airmen and women must know that our state will do what it takes to help them succeed. this morning i went to the airport and there is the first montanans to get to oakland 45 soldiers from the mind can a national guard who had just taken a year of their life and spent it in afghanistan. i told them our commitment was a our -- and is a correspondent for national journal. amy moderates a popular energy experts blog. since coming to "national journal" in 2,000,008, amy has covered a variety of topics including foreign policy, national security letter clever to rising and the election of the new supreme court justice. prior to nj she was a staff writer for the reporters committee for freedom of the strong and the lieutenant governor walsh tonight would insure we live up to the promise that all of this made saddam when they send out. if i asked the legislature to invest in our university system and make certain we provide services and space to meet veterans mean. the wraparound services to reintegrate his heroes back into civilian life and onto our college campuses. when i got back to the airport i
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press. ireport from the automakers panel will include, and i would love you all to be able to hear these folks names as i introduce them. robert bienenfeld senior manager environment and energy strategy product regulatory office, american honda motor company incorporated. reg modlin director of regulatory affairs chrysler llc. tom stricker vice president found that while i was gone a committee cut services for returning vets. i urge you to restore the funds. by that to the promises they've made and welcome these warriors home with more than just words. [applause] predatory affairs in energy and environmental research, toyota motors north america incorporated and amy, if you would like to get started we will try to get the audience to quiet down. >> thank you for that great introduction. we have two out of three of our panelists so i guess that is the two-thirds majority so we will go ahead and get started. i think that was a great discussion with gina mccarthy and mary nichols and the other experts on that panel. i want to take the big picture and now, if we're serious about training tomorrow's workforce, our commitment must begin now when our kids first enter college or not when they enter the workforce, but her commitment has to begin when they first enter the world. we can't wait until connector to take an interest. the evidence is compelling. every dollar we invest in early
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and talk about the two sets of regulations that the obama administration proposes and finalized in the last four years. it was certainly a busy first term and now the next four years is really where the bumper hits the road. i would like to ask each of you to talk about what challenges and opportunities he sees and the -- up until at least 2025 about how your companies are going to simultaneously meet these standards and also sell the cars childhood education returns it to $9 communities. early learning programs work. children involved in early education to better not english. they're much more likely to crash of a high school. they are a third less likely to be arrested as a juvenile. unfortunately montana is dead last in the nation. fiftieth out of 50 in state investment in early childhood that you're making. why don't we start with you, tom at toyota. >> thanks for having me here today. first, let me tackle that question by addressing first the need for the standards in the first place. the auto industry was facing a set of overlapping regulations from the federal department of transportation corporate average education and to me that's done except the role. we can't expect headstart and other programs to carry the entire written. some communities have set dead to make sure youngsters are given a better chance. we saw a modest investment in a preview program led to a dramatic shift in readiness and the students in our state on a
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fuel economy program which has been on the books for a number of years as well as as mary nichols talked eloquently about earlier regulations at the california air resources board for greenhouse gases and after the supreme court decision on greenhouse gases, epa also looked to adopted national greenhouse gas program for motor vehicles. in an interesting aspect of the much better path to the future. other communities across the state have seen the same. as the first step, i encourage this body to expand the quality program and make a long-overdue investment in school readiness. if they got a plan that will create 100 more high-quality early childhood programs, getting 600 more families in a test of our children ready for school each year to prevent high clean air act, section 177 allows other states also to adopt california's program if epa grants california waiver of preemption to implement the program. so we are faced with the prospect of two federal programs, one for fuel economy which is very similar if not the same as greenhouse gas and another one for greenhouse gases as well as california and 10 or 12 or 13 other states return investment that will produce benefits for students and our economy. [applause] and our commitment can be just in college. it can't be an early learning. ms continue to escalate appeared in 1980 sutter st. at montana
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implementing their own state legislative regulations. i don't want to speak for the whole industry but that was a large motivating factory -- factor at least for toyota to come to these regulations in the first place. but having said that, the 54.6 or 56.4, whatever it is, was quite a challenge and i will say that you know on the previous panel there was a lot of lottery specifically to find montana schools. in the 1990s, the legislature began reading funds for non-education products. it's time we did right by our bosses and their kids. i had for you to support my proposal to return profits from the lottery to public schools as they are intended to support. [applause] discussiodiscussio n about consumer technology and i think that will prove to be one of the keys to this. i will say from toyota's view when it comes to some of these technologies for example hybrids we don't see that as an action -- issue. as. as was mentioned on the last panel as well the total market lester for hybrid vehicles in the u.s. was shy of 500,000 vehicles. toyota share that with 55% adding 330,000 vehicles. we see hybrids as the technology by budget also includes additional funding for the highly successful jobs for montana scratchers program. they first learned about this program from governor mark roscoe who brought it to montana. the graduation rate for at-risk teen involved in the program is an amazing 90%. the vast majority of graduates thank onto jobs, military service or higher education. after 14 months on the job, the
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that consumers have accepted and will continue to accept and we are going full speed ahead in this realm, and i think in addition to the hybridization you will see different internal combustion engine technology in terms of downsizing a of engines, turbocharging, direct injection but again some of those require improved fuels to make maximum use of those tax these kids they have rdp for more than the investments we have a state have made. please support an expansion of the program. [applause] additionally, technology specialist or global marketplace , but far too many schools are lagging behind. the funds in our pockets are systems. so it is a challenge. the midterm review which perhaps will talk about is what will be the key to make sure the standards are still achievable the way we see conventional vehicles and hybrids as a core strategy moving forward. >> robert what do you see as the way your companies going to be able to meet the standards and what challenges do you foresee? better and had access to some of the classes are under state. that's why i support further investing in our schools and using state resources to help school districts modernize and acquire today's technology. we can and will work together to invest in and improve our schools. in making even modest investments in early childhood education and technology improvements in schools, i'm
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>> so, at the 2025 fuel economy standards are ambitious and we fully support the goals, the trend goals of reducing co2 and improving fuel economy. there is going to be -- i think it's a lot of people upset already, there is going to be a lot of evolutionary changes to internal combustion engines. we are going to see a lot of asking you to look beyond the immediate comment beyond the session or even beyond the length of time that you and i look at the surge in public office. it's not always easy investing now for later returned, but that's what leaders do. i'm asking you to look beyond the immediate and other areas, too, including transforming the way we deliver health care so they can create jobs and take improved engine technology, transmission technology and reduced road load which is what we refer to when we are talking about aerodynamics and weight reduction and accessory load reduction like improved air-conditioning and reduced power consumption for lighting. so in many ways that conventional internal combustion engine is going to be redefined. care of those who need our help the most. to have a healthy economy, we need to have healthy citizens. for those of us with health insurance, were paying too much and getting too little. for the tens of thousands who don't have insurance, the emergency room has become a primary care facility pushing costs for all of us even higher. the fact is subsidizing
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40 years ago we had a 40 year supply of conventional oil and what has happened is we keep redefining what is conventional oil because technology improves. in much the same way, we are redefining what conventional technology is going to be for the internal combustion engine. i think it's going to be for the conventional technology, there expensive er care costs montana's $300 million a year. that makes no sense when they're smarter, cheaper ways to provide better care. directs this helped montana, we're proposing an an eight match in a solution designed coverage and access to health care for more money to the families. it will also create a patient is going to be fairly smooth transparent to consumers. it will be better, better performing, quieter as aerodynamics improves, safer. all of those things that people come to expect from cars. of a will be more expensive. on the other hand if you look at the index of weeks, average weekly salary to pay for an average new car, we are near centered delivery system that focuses on coordinating care and improving health, rather simply treating illnesses. implementing measures will allow us to control and ultimately lower the cost of care from a slowing in the rate hikes that are out of our wallets. this is an opportunity to reduce costs and expand access to quality care for nearly 70,000 montanans.
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los. it's not as high as many people think and yet we have added lots of technology to improve vehicle performance over that time. so i think that will continue. as we get towards the later years past 2020, we will see a lot more emphasis on sort of the newer technology that people talked about, the newer technologies that will have to show up in higher valium -- [applause] in and out, it's more than that, though. access help will create more than 5000 new jobs next year alone by bringing millions of dollars in new economic dignity volumes like hired hybridization and other technologies. i think it's mostly evolutionary with the new technologies that are coming on the market today will play a greater role. >> what about you? do you agree with these comments and where do you see vehicle to montana. it will cut costs by providing preventative care and cut costs because those with insurance and much more likely to visit a doctor than just visit the emergency room. medicaid expansion is federally funded. so if montana does not expand its medicaid program, our tax dollars will be used to help patients in states like arizona,
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technology fitting into this? >> over the last two or three years economy standards were being discussed, negotiated, at debated and finally put in place of what became very clear that in this industry we all had the same issue. the conversation with the agencies as we went through this was never really a technology issue per se. what. what it was was consumer nevada and north dakota, states have republican governors are leading the effort to expand medicaid. let me make that point abundantly clear. if we fail to act, montana taxpayer dollars will be used to provide health care to citizens thousands of miles away while they rates look to you to go up year after year. acceptance challenge at a price the consumer could afford to pay or the cost that consumers could afford. that was the big question that's the reason that beyond 21 the rules are not certain. that's why we need to review so we can assess to questions. are the consumers buying technology and are the consumers willing to buy the product from 17 out of 25? those are the two questions we are challenged with. it's time we set politics aside on this issue. politics won't treat diabetes. extremism doesn't create jobs and intransigence will provide health care for those who can't afford it. [applause] [cheers and applause]
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we will go to discussions about cost of technology and availability of fuels and such but all of those are circuits to answer the other two questions. they technology is going to a fault. the challenge we have all accepted to pursue high fuel economy and low gas emissions and the challenge is can u.s. innovators innovate other technologies to the point consumers are willing to buy and can afford to buy? >> i was the price to see gina under access help montana it's also doing other things. i also propose 25% the number of seats in the winter program which allow montana students to attend medical school with other students in the northwest. the programs been extremely successful in encouraging our montanans to come back to our mccarthy and -- about how engines will dominate what the automakers make throughout the entire world. i. i think the goals set elector carswell do very little for the regulations will to create little to push a person toward electric cars even going through up to close to 2025. with that said, what other incentives do you think cities and towns and rural communities and open up the practice. there hasn't been an increase in the number of slot for the program in over two decades. for that and other reasons, tonight i ask each and every member of the legislature to take the longer view, lead the way by focusing on health and welfare of our neighbors. let's work together to put
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automakers and other industries as a whole would need in order to get electric cars and other alternatively fueled vehicles into the market more? i think right now it seems like electric cars and anything other than gasoline fueled cars, their biggest competition is each other. i've. i've know right now the prius is the most popular hybrid electric car and that's a big competition for these full electric cars so what you think do you think is going to be needed to get electric cars past the of montana's first and use hard-earned tax dollars wisely. [applause] if that's even view that will allow -- the same longer view that will help montana to lead america to energy independence. with responsible development of our coal, wind, oil and gas, breaking the bears to compete with this gasoline fueled cars? >> if i may? first of all, especially here in washington what we need to talk about is the goal, not the technology. sowell case in may be the tool, hydropower, biofuels and geothermal capacity, we are creating jobs and strengthening our rural economies. for some communities in eastern montana, the rapid growth associated with the energy boom business created immediate infrastructure challenges. that's why he proposed creating a grant program for communities affected by oil and gas development. i ask what invest $15 million in providing matching funds to
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it may be the outcome but we don't need that dictated by specific policies. what we need are clear rules affect cities and towns, areas that don't get a share of increased revenues the county government from school districts are safer while gas development. this challenges, but opportunities for the whole state. i hope you join me in addressing this challenges. [applause] [applause] we must also meet our responsibility to fix a long-term problem created by her predecessors. i've outlined a detailed plan that will shore up our public retirement systems can do so without raising taxes. i look forward to working with this body to ensure we craft a plan that honors our commitment to montana's public spirit
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within that doesn't go back on promises made to snow plow drivers, presenters, teachers and other middle-class workers who are friends and neighbors. as i've heard it described to you, saving some for rainy days simple. i also believe we can wisely invest your resources to create jobs and improve educations. with half a billion dollar surplus, giving back some not to be equally simple. i believe are more likely to create jobs if we invest in working families, small businesses, farmers and ranchers shouldn't. in my book, an investment in main street is an investment that will pay off in montana. [applause]
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know some disagree with me. they believe would be better off if we focus on helping multinational corporations that could have their headquarters in pennsylvania, and delaware, bankers in new york, helena and washington d.c. don't get me wrong. other then when they spend shareholder dollars in election, i love those corporations that hire montanans and invest in our community. [applause] i welcome those corporations that want to work with them to create jobs and invest in our state. but when montanans dirty rank as having one of the country's best text alignment in the nation for business, let's never allow this information to be motivation for missteps. but the value of tax rebates and
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tax cuts with eyes wide open. [applause] i propose returning $100 million back to the pockets of montana homeowners. i recognize others suggest we should use the hundred $9 to provide property tax cuts instead. the difference between a tax rebate in the tax cuts is simple. who stands to dataset. given $100 million in the form of a tax rebate will return $400 billion to everyone whose primary residence in the state. when you put a check in the hands of montana taxpayers, they take money downtown and spend it in the small businesses along main street. if you take the hundred million dollars in music to cut cut property taxes instead, the
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average montana homeowner would receive $44 this year. not 400. think about that. it will take 10 years for the taxpayer to get back as much money as they could see with the rebate. get if you're a company like tpn l., to propose tax cut but we were just million dollars this year alone. that's 23,000 times more than the average homeowner would receive. if we consider who stands to benefit from our actions, to make a path we should take becomes clear. we have the opportunity to return montanans, create $100 million of economic activity in montana. the rebate won't blow long-term holes in our budget.
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it was settled future legislatures if future generations what the washington d.c. federal deficit that montanans avoided during this recession. let's not miss this chance. [applause] the same goes for custody business equipment tax on the market value equipment of business owners. the last legislature reduces tax breaks across the board for every company in the state. let's take the next step and eliminate this tax for 11,000 montana businesses. two thirds of the businesses that pay it doing so will directly benefit the street is mrs. in each of your communities. repair confectionary has-been making and selling candy since
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1922. under my proposal of the parent would no longer pay this tax. the windows in great falls manufactures and distributes windows that can stand up to the harsh montana claimant. they can use business equipment tax dollars they been paid to further invest in business. under my proposal, the iron horse also heard that number breathing room in the bottom line. for manufacturers to restaurants to tatters to service providers, 11,000 montana businesses will no longer pay this tax, for thousands of dollars to invest in businesses or employees. we have the opportunity to stand with the vast majority of small and midsize businesses in the state. let's not miss this chance. [applause]
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finally, as we focus on creating jobs, invest in education and making government more effective, but so is behave in a manner that will make her children proud. i've heard it and trying to change the tone in the halls of this building. i hope you'll join me in doing so. i hope you'll suturing me in preserving the integrity of our elections. 100 years ago, our ancestors came together, not as democrats or republicans, but i've montanans to take control of their destiny. for taking montanans newer elections come in the cornerstone of our democracy should be about principles, ideas, beliefs and plans for the
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future. our campaign should be vigorous debates about the problems we face in those opportunities that lay ahead. the new government should be about people, lending a hand to those who need it better in this place that we love, ensuring the next generation has opportunities even greater than we enjoy. i surely think in the last hundred years, since then, leaders have always been friends and neighbors and they have the doubt for entries. in the century following the passage, montana has benefited from a strong citizen democracy. in the past several years however, more money than other has been spent on a political campaign. it was at the national level in here in montana. as attorney general, thought to preserve our democracy and sent the tide of corporate money in our elections.
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[applause] [cheers and applause] we've seen the rise of turkmen groups, the target candidates yet refuse to tell the public who they really are and what they really represent. they hide behind made-up names in major newspapers. they operate at it po boxes or washington d.c. office buildings. they falsely proclaim themselves regarding ahmad tanis traditions. these groups believes he can violate laws and corrupt government to create a system that benefits special interests. montanans deserve better.
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[applause] the entire nation is looking to us to continue our fight to preserve her citizen democracy. we see this as regular, all of you from all corners, committing time and energy for 90 days here. other states are astounded. other states don't always have the citizen democracy and the legislature we have. we can show those people who believe the elections could be and sold what democracy really means. its government for the people, by the people and of the people. help me reform our laws. homey do so so any organization spending money during the course of an election reveals the amount i spend in the source of
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its many. this is a modest proposal. hope they make sure voters and investors know who's been doing and how much. together, let's guarantee our elections will never be auctioned controlled by anonymous bidders. [applause] and they think i'm looking for truly we are nothing less to those ancestors from 100 years ago we are nothing less to her kids will inherit the government that were running today. there's an old saying that if you don't know where you're going, any road will get you there. we do know where montana must go. better jobs, better schools any
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more effective government. we have a lot of work to do, but tremendous opportunities lay ahead. let's use our time in office wisely come each and every one of us. let's build on, but not be constrained by the progress of the past. that's a resolute in keeping our focus forward into the future. and indeed if any one of our terms, yours or mine, we will be measured by the progress being made. and the true measure won't be politicians or will be taken by pundit. true measure will be by our children and grandchildren. let's not forget it's too bad we are most accountable. god bless montana's children and families. god bless montana, god bless america and thank you for letting me be before you this
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evening. [cheers and applause] >> georgia o'keeffe is really the first well-known woman artist and even well into her life in the 1970s, there is no one who could match her fame and she became a feminist icon and i grew up under the influence. by first recognition is not an historian, the budding feminist whose attention was trying to fabulous paintings and i lived in colorado and people talked about this woman and the way she lived. the fact from 1929 forward she came to new mexico from inside of the year, living apart from
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her husband in the 30s and 40s continue to do this for 20 years until her has-been status and that she moved to new mexico full time. so she lights up our imagination as an artist because she was famous so young, but secondly, she lived the life she wanted to live in is a very disciplined by men. i think that stands out as women make choices event right through to the 70s comment they made choices that accommodate family and other pursuits in their life. georgia o'keeffe had one driving passion in her life. it was through her.
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>> to tell me they're going to pass the bill, a good bill and similar rights. can sure get him to agree to put a closer review procedures going to try and keep from passing anything? >> i think we've got to do so with. >> today, john kerry gave his senate farewell speech, we think his colleagues and reflected on his 28 year career representing massachusetts as a u.s. senator. the senate confirmed on the secretary of state nomination on tuesday in a 94 to three for.
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>> i want to begin by thanking my colleagues, all of them for their unbelievably generous comments to me personally in the canadian on the floor and in the halls and meeting so the course of the last weeks. i will always be grateful for her friendships. i think my wife, teresa, who is hearing the family gallery in my entire family for their unbelievable support through this journey. five times massachusetts has voted to send me to the united states senate. yesterday, nearly three decades after the people of massachusetts voted me in the office, the people i work with in the senate voted out. as always, i accept the senate sound judgment. eight years ago i admit i had a very different plan from a
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slightly different to read the senate, the 61 billion americans voted they wanted me to stay here with you. and so, stay in here learned about humility and sometimes the greatest lesson in life comes not from victory, but dusting yourself off after her defeat in starting over when he did not sound. i was reminded throughout this journey is something often said, but not always fully appreciated. all of the senators are only as good as their staff. i sat the kids up nights and weekends, postpones vacations, doesn't get home in time to type children in bad and all those last moments because they are here hoping to serve. they are not elected. they didn't get into public service to get rich. that's for sure. and their names are rarely in the newspapers.
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but from the stuff in the mail rooms to the people who answered the front phones, policy experts and managers, legislative correspondence with the letters, caseworkers to make government accountable and people everywhere in between, they make this a network for people. i've been blessed to have a spec secular staff and while i know everyone on my colleagues would say the same thing about their staff, it's true about mine. if i start naming names, i'm going to miss somebody, so i'm not going to. but everyone on my staff who understand my what a knowledge by going out with this any longer. the rep in heaven looking down and all of us and ted kennedy is drafted all of us. jeanette didn't, bill bradley and jean heller. the latter two were senior citizen volunteers who open their mail for over a decade.
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not paid. it is added to the country. we miss them all and thank them for their selfless contribution. as i do, entire staff of 561 incredible men and women in massachusetts and washington through these 28 years. i also think about the interns. what does it 393 have come in and out of offices from washington to worcester and i'm especially proud restarted as interns and ended up as a chief of staff, legislative direct or commit senior policy staffers for the kerry in terms an untruth not just for me, but you have for the last four years at top speechwriters, tractor or compass intercommunication step the white house and president of the united states. i'm proud of our internship program is great for the people who built it and sustain it.
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i also want to thank the incredible group of unsung heroes who literally make the senate were. people who work not for individual senators, but all of us in every round and can creamy of this great series of buildings. the men and women who operate the senate subways, trains, elevators take us to the vote meeting i really the glue and we couldn't function without them there an extraordinary group of people. the capitol police to protect us, a lot of people are understood to notice more after that awful day made 298 when two were shot and killed on a busy wednesday afternoon. the parliamentarians and the clerks and staff on the floor including gary and 10 in trisha and meredith and clerks in the cloak room, all of them help
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keep us going and are unfailingly patient when they call for the obtained time to find out whether the schedule at his home church has dance recital or birthday party or any kind of family event. i want to thank the many moments who came here more than 40 years ago, to doug annan made the senate are causing concern. people like mike murphy who makes everyone's life easier. i think the reporters who catches and holidays, trap snmp shows and hallways and who despite all the changes and challenges in their own business still dutifully document first drafts of american history. i think the incredible people who travel through these halls, working incredibly hard to get it right. people of character who cover this place.
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it's not a sport and i think then. david rogers for he stood so far hard to imagine my job but i've seen him in the locker & co. after a late night vote. sometimes in politics, it's now almost a sport in america to dismiss contributions in people who work in government. people who make this a network, but the public never see. the way of our pharmacology succumbed on the floor once a week and tell the story of one individual federal worker. the stories are legion. instead of tearing these people down, we have to let them out and i thank them all for the part they play in our democracy. i will share with you now that i've come to this moment in the journey. i can say without reservation that nothing prepares you for
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it. many times out of 28 years i've been at my desk chair on the floor started whenever they come in number 99, listening as colleagues that the senate farewell. sometimes the farewell speech that is a complete departure from public life. sometimes a new journey altogether. sometimes forced departure. sometimes the leap for freedom. i'm grateful at this moment that thanks to my colleagues, serendipity and the trust of our president, while closing a chapter, it's not the final one. you sure you meant the excitement and possibility as you feel the sun is about the united states senate. and that's because despite the obvious frustration in recent days and years, the frustration we all share, this place remains one of the most extreme or
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institution any time on the face of the earth. on occasion we've all heard a senator leave here and take a leaf condemning the senate for being broken for having become an impossible setting to try to get people's business. i want to be clear of my feelings. i do not believe the senate is broken, strictly not as an institution. there's nothing wrong with the senate they can't be fixed by what's right about the senate. the predominant in waiting notion that 100 american citizens, chosen by neighbors to serve states is different as massachusetts and montana can always choose to put parochial or personal interests aside and find the national interest. i believe it is the honor of a lifetime, an extraordinary
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privilege to represent the states senate forassachusetts more than 20 years. what a remarkable gift to spend to carry the banner of the senate in massachusetts just as each of you feel that way by uris dates. the banner in our case past from a sense of the american revolution that you know webster to the sons of immigrants by paul tsongas and to do with in quincy market could send to washington in the ted kennedy who sought to expand solar array and now the woman, elizabeth foreign, approved in massachusetts a cost ceiling has finally been forever shattered. what a remarkable gift massachusetts has given me to come here and learned so much about the rest of the country. i've had the privilege of
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learning but really makes our nation tape. what a gift to have been the nominee of my party, to have come within a whisker of winning the president teagan the wartime incumbent, but more importantly experience the magic of our nation in such a personal way. to experience the gift of traveling along the banks of the mighty mississippi through iowa and south dakota and rivers where lewis and clark march enmeshed with the dream of our first secretary of state, thomas jefferson that would advance into the last to experience a journey that took me to alabama where he stood silently for a much talked to king appreciative stream and tipped my fingers into the top of birmingham where water flows over the name of those murdered steve bullock
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that are just registering to vote to see the latter chicle uncovers the dark or sparing justice maypole down like waters and righteousness at the mighty stream. i drove of course the hoover dam and i wondered if they did at what america can accomplish when we want to, when we put our minds to it. driving across the globe gate bridge at john, i reminded it was built at the height of the great depression and so many feared that our best days were behind us. what i've seen and heard and learned traveling across the country as a senator from massachusetts has prepared me more for my travels to other countries and secretary of state than a t
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